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According to a survey of Japanese private companies holding 20 million yen (about U.S.$198,000) or more in capital, environmental businesses are enjoying favorable economic conditions, with positive six-month and ten-year outlooks. Here are some highlights from the Ministry of the Environment (MOE) survey.
MOE has been conducting Kankyo Tankan, a biannual economic survey of about 12,000 companies in Japan, since December 2010, on its views and confidence in environmental businesses. The results of the latest survey, conducted in June 2016, were published by MOE on August 29, 2016.
The diffusion index (DI) of business confidence--the percentage giving "positive" replies minus the percentage giving "negative" replies--was +16 for environmental businesses, down by 5 points from the previous survey conducted in December 2015, but higher than the DI of +11 for all businesses, showing continued economic strength in environmental businesses. As for future prospects, environmental businesses are expected to grow, with the DI reaching +18 in six months and +22 in ten years.
By major environmental business categories, the DI was +9 for Category A (Pollution Management), +25 for Category B (Countermeasures against Climate Change), +6 for Category C (Waste Management and Efficient Use of Resources), and -9 for Category D (Natural Environment Management), which highlights the contribution of Category B to the overall business confidence. As for the ten-year projection, the survey predicts that the DI will be +22 for A, +27 for B, +9 for C, and +18 for D. The negative value for Category D is thought to be temporary, and natural environment management businesses are expected to recover.
Environmental sectors that look promising in Japan include Energy-Saving Vehicles, which ranked first at 26.0 percent, followed by Air Pollution Control (equipment & facilities) at 16.6 percent, and Renewable Energy (excluding solar power generation systems) at 10.8 percent. In the six-month outlook, Energy-Saving Vehicles remain at the top of the list, but in the ten-year predictions, Renewable Energy (excluding solar power generation systems) ranks first in the promising businesses list.
Renewable Energy (excluding solar power generation systems) also tops the list of environmental businesses that respondent companies want to launch in the future at 28.5 percent, followed by Energy-Saving Consulting at 17.6 percent.
Survey details are as follows:
Survey period: June 1, 2016 to July 8, 2016
Survey subjects: 11,676 Japanese companies selected by capital- and industry-based stratified random sampling from among private companies capitalized at 20 million yen or more. Valid responses were obtained from 5,010 companies, giving a valid response rate of 42.9 percent.
Survey method: Responses were obtained through regular mail, via fax, online, or by email.
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Tokushima Prefecture announced on November 10, 2016, that it has adopted an ordinance to promote climate measures that will free the prefecture from its reliance on carbon. The ordinance rests on two pillars: mitigation measures designed to curb greenhouse gas (GHG) emissions, and adaptation measures to buffer the impacts of climate change. The ordinance will make the most of local resources as it accelerates efforts toward a carbon-free society.
Mitigation measures outlined in the ordinance call for collective efforts by prefectural residents toward tackling climate change and building a smart economy that closes the loop on natural resources by the year 2060. It seeks to reduce GHG emissions 40.0% by fiscal 2030 from the 2013 level, which is more aggressive than the national target of 26%. To ensure steady progress, it has also set a 20.1% reduction target (compared to the fiscal 2013 level) for energy consumption, which is not influenced by power source-specific emission factors, to be achieved by FY2030.
The adaptation measures, meanwhile, are aimed at minimizing risks and damages caused by climate change and making the prefecture stronger and more resilient so it can recover more quickly from any impacts. Action plans have been drawn up in six areas: conservation of prefectural land, natural ecosystems, water environment and resources, health, industry and economy, and agriculture and fishing (food). Adaptation goals will be shared and pursued across these six areas with the help of a head office for environmental measures promotion. A climate change working group will conduct evaluations to ensure robust implementation of the action plans.
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